Melrose takes control of GKN

Melrose announces that it has received valid acceptances representing approximately 52.43% of the voting rights of GKN.

Melrose says that it is pleased to that the Acceptance Condition has been satisfied and that its offer therefore has become unconditional as to acceptances.

“We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalisation of over £10 billion and a tremendous future. We are looking forward to working with GKN’s talented workforce and to delivering for customers and all stakeholders. Melrose has made commitments as to investment in R&D, skills and people and we are very excited about putting these into action,” Christopher Miller, Chairman of Melrose,” says in a press release.

GKN still thinks it’s undervalued

The Board of GKN has made it clear that it considers the offer to fundamentally undervalue GKN. However, the board recognises that, in the event that the offer is declared wholly unconditional, Melrose would acquire control of GKN, the company writes in a statement.

GKN continues to voice its concerns pointing to that if the level of acceptances reaches 75%, Melrose has stated that it intends to take steps to delist the company. This could leave shareholders with a minority interest in an unlisted company, with the liquidity and marketability of GKN shares significantly reduced as a result.

The offer will remain open for acceptance until further notice and Melrose expects that the offer will become wholly unconditional by no later than 19 April 2018.

“Let me assure you that GKN is entering into very good hands,” Christopher Miller said in the press release.

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